While 2008 is coming to a close and hopefully the “housing bubble” also comes to a close, I may suggest that another bubble is coming with all the bailout money and extreme risk aversion:
Treasury outperformance over Commodities – to be burst
Charts | bigapplemp | 
December 27, 2008 2:20 pm | 
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We have already talked about the Government bailout is none other than a SIV in new clothing and ultimately delaying the pain of a true bust.
The problem of what Bloomberg has asked for has a very BIG unintended consequence. Remember, when we all found out what the banks are holding and where/how they are valuing some of these assets, the world went panic on banks. Unfortunately with such as rushed bailout, it is unlikely that the government has done a much better job on valuation. On top of this, it is clearly very very levered on US taxpayer’s money. One may argue that it is not that levered compared to our GDP but if you take out all the necessary government and welfare spending, then this bailout per remaining cashflow is extremely levered…. so all in all, is Bloomberg asking for a run in the US currency?????
Commodities/Futures | bigapplemp | November 9, 2008 3:57 pm | Comments (0)
All eyes on tomorrow’s election in the US. Meanwhile, dont miss the following articles:
Tags: gold
General | bigapplemp | November 4, 2008 2:47 pm | Comments (0)